Universität zu Köln

Thöne, Michael ORCID: 0000-0003-1455-8091 (2022). The Quality of Public Finances. Discussion Paper.

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Abstract

The concept of the "quality of public finances" (QPF) covers many qualitative and structural issues of fiscal policy. This chapter traces the origins of the concept of QPF to the Lisbon Strategy and the subsequent EPC Working Group on "Quality of Public Finances" (2004‐2007). At its core, the QPF focuses on the impact that the composition of public spending has on long‐term goals such as economic growth. Growth‐ and sustainability‐enhancing public spending comprises infrastructure investment, human capital investment (education, health, family policy, gender policy) and spending on natural capital and climate protection. Today, QPF indicators can very helpful in national fiscal governance and for the supranational surveillance as in the EU. A future QPF approach for the 2020s should help to prioritize inclusive growth and decoupling economic growth from the use of finite resources. Quality indicators can also help to determine the legitimate levels of new government debt (“green golden rule").

Item Type:	Preprints, Working Papers or Reports (Discussion Paper)
Creators:	Creators Email ORCID ORCID Put Code Thöne, Michael thoene@fifo-koeln.de orcid.org/0000-0003-1455-8091 UNSPECIFIED
Corporate Creators:	Finanzwissenschaftliches Forschungsinstitut an der Universität zu Köln
URN:	urn:nbn:de:hbz:38-734879
Series Name at the University of Cologne:	FiFo Discussion Papers
Volume:	22-2
Number of Pages:	15
Date:	April 2022
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Externe Einrichtungen > An-Institute > Associated Institutes of the Faculty of Management, Economics and Social Sciences > Institute for Public Economics
Subjects:	Economics
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/73487